Slide 1: Results Briefing for the Year Ended March 31, 2014
Results Briefing for the Year Ended March 31, 2014 May 20, 2014 TODA CORPORATION 1
Slide 2: Forward-looking statements
This report contains forward-looking statements regarding Toda Corporation and the Group’s corporate plans, strategies, and business forecasts. These statements include Toda Corporation’s forecasts based on information currently available as of the announcement date, which are subject to a number of
Slide 3: Today's Schedule
Today’s Schedule 1. Summary of Financial Results Executive Manager Yushi Kikutani 2. Management Initiatives President Masanori Imai 3
Slide 4: 1. Summary of Financial Results
1. Summary of Financial Results Executive Manager Yushi Kikutani 4
Slide 5: 1-1. Summary of Financial Results for the Year Ended March 31, 2014
1-1. Summary of Financial Results for the Year Ended March 31, 2014 5
Slide 6: Highlights: FY2013
Highlights: FY2013 Consolidated Net Sales: ¥448.9 billion, down 9.7% year-on-year ： Net sales fell 9.7% year-on-year to ¥448.9 billion, as completed construction contracts at the Company and domestic subsidiaries declined Operating Income: ¥4.7 billion, up ¥51.7 billion year-on-year ： Operating
Slide 7: Summary: FY2013
Summary:FY2013 (Millions of yen) FY2013 FY2012 Forecasts (announced Change Difference on Feb 13, Actuals (year on (vs. forecast) 2014) year) Consolidated net sales 497,048 450,000 448,987 -9.7% -1,013 Operating income (loss) (46,997) 4,700 4,782 － 82 Ordinary income (loss) (45,581) 6,000 6,584 － 584
Slide 8: Main Orders Received
Main Orders Received Ordering Parties Name of Works Architectural Otemachi 1-chome No.3 District category 1 urban Mitsubishi Estate Co., Ltd., etc. Construction redevelopment Hiroshima Station South Exit C-block Hiroshima Station south exit C-block category 1 urban Urban Redevelopment Union redevelo
Slide 9: Main Works Completed
Main Works Completed Ordering Parties Name of Works Architectural JGC CORPORATION Mental health center maintenance and operation Construction Nintendo Co., Ltd. Ｎ New office building construction Saitama Prefectural Government Saitama Cancer Center new hospital MORI TRUST CO., LTD. Kyobashi Trust To
Slide 10: 1-2. Details of Financial Results
1-2. Details of Financial Results 10
Slide 11: Toda Group (Consolidated) Business Structure
(Consolidated) Toda Group Business Subsidiaries in Japan Overseas Subsidiaries 14 companies APEC Engineering Co., Ltd. Construtora Toda do Brazil S/A Chiyoda Kenkou Co., Ltd. Toda Construction (Shanghai) Co., Ltd. 8 Construction Architectural Construction Thai Toda Corporation Ltd. companies Toda Vi
Slide 12: (Consolidated) Summary of Group Performance
(Consolidated) Summary of Group Performance FY2013 Ratio of FY2013 Toda Corporation Subsidiaries total consolidated consolidated results to non- Billions of yen % % % consolidated Results Net sales 409.5 57.9 448.9 1.10 Gross profit 23.0 5.6 2.8 5.0 25.4 5.7 1.11 Selling, general and 18.3 2.7 20.6 a
Slide 13: (Consolidated) Statements of Income
(Consolidated) Statements of Income FY2012 (actual) FY2013 (actual) Changes FY2014 (forecast) Billions of yen % % ％ Net sales 497.0 448.9 -9.7 427.0 Gross profit (loss) (24.6) -5.0 25.4 5.7 ― 26.4 6.2 Selling, general and 22.3 20.6 22.5 administrative expenses Operating income (loss) (46.9) -9.5 4.7
Slide 14: (Consolidated) Net Sales and Operating Income by Segment
(Consolidated) Net Sales and Operating Income (Loss)by Segment Net Sales Operating Income (Loss) (Billions of Architectural Construction Architectural Construction Civil Engineering yen) Civil Engineering (Billions of Real Estate and Other Reall Estate and Other yen) (41.3) 12.1 11.7 600 502.8 453.5
Slide 15: (Consolidated) Breakdown of Net Income Increase
(Consolidated) Breakdown of Net Income Increase (Billions of yen) 200 20 100 10 Other 10.2 00 +2.2 Extraordinary -100 (10) income (loss) +6.7 SG&A reduction +1.7 -200 (20) Decline in income taxes +16.5 -300 (30) Gain on sale of investment securities (65.2) +2.3 Decline in loss on valuation of invest
Slide 16: (Consolidated) Change in SG&A
(Consolidated) Change in SG&A (Billions of yen) Consolidated Non-consolidated SG&A ratio 300 30 5.3% 6.0% (consolidated) 4.5% 4.6% 22.3 22.5 200 20.6 4.0% 20 20.1 19.5 18.3 100 2.0% 10 00 0.0% FY2012 FY2013 FY2014 (forecast) 16
Slide 17: (Consolidated) Balance Sheets
(Consolidated) Balance Sheets (Billions of (Billions of Assets yen) Liabilities and Net Assets yen) -26.6 500.1 -26.6 500.1 473.5 473.5 Current Current Current Current assets liabilities -27.7 assets -35.2 liabilities 271.8 293.9 244.0 258.7 Noncurrent Noncurrent liabilities -5.2 liabilities Noncurr
Slide 18: (Consolidated) Change in Investment Securities
(Consolidated) Change in Investment Securities Book value Valuation difference Nikkei stock average (Billions of yen) Stock price (yen) 2000 200 14,827 16,000 12,397 1500 150 147.5 12,000 143.3 9,755 10,083 Valuation 110.2 110.7 60.4 difference 1000 70.4 8,000 100 27.7 26.3 500 50 4,000 82.5 84.3 82
Slide 19: (Consolidated) Change in Interest-Bearing Liabilities
(Consolidated) Change in Interest-Bearing Liabilities (Billions of yen) Short-term Long-term 1000 100 70.0 -7.8 800 80 73.4 65.5 57.5 20.6 600 60 13.2 20.4 400 40 52.7 52.3 200 20 37.0 00 Mar 12 Mar 13 Mar 14 FY2014 (forecast) Ratio of interest- bearing liabilities 11.8％ 14.7％ 13.8％ ー 19
Slide 20: (Consolidated) Change in Provision for Loss on Construction Contracts
(Consolidated) Change in Provision for Loss on Construction Contracts (Billion of yen) Architectural Construction Civil Engineering 250 25 23.1 Civil Engineering 2.2 200 20 -7.6 15.5 150 15 14.0 2.1 2.8 Architectural Construction 100 10 20.9 13.4 505 11.2 00 Mar 12 Mar 13 Mar 14 20
Slide 21: (Consolidated) Statement of Cash Flow
(Consolidated) Statement of Cash Flow (Billions of yen) +14.0 62.0 48.0 Income before income taxes +11.0 Notes and accounts receivable-trade +41.0 Notes and accounts payable-trade (37.9) Cash and cash Costs on uncompleted construction contracts (2.4) equivalents Cash and cash Loss (gain) on sales of
Slide 22: 1-3. Performance Forecasts
1-3. Performance Forecasts 22
Slide 23: Forecasts for FY2014 (Year Ending March 31, 2015)
Forecasts for FY2014 (Year Ending March 31, 2015) FY2014 FY2013 Change Forecasts (Billions of yen) (year on year) Consolidated net 448.9 427.0 -4.9% -21.9 sales Operating income 4.7 3.9 -18.5％ -0.8 Ordinary income 6.5 5.3 -19.5％ -1.2 Net income 10.2 4.7 -54.1％ -5.5 Orders received 454.4 360.0 -20.8%
Slide 24: (Non-consolidated) Forecasts for the Construction Business
(Non-consolidated) Forecasts for the Construction Business (Billions of yen) Orders Received for Net Sales of Completed Gross Profit Margin on Completed Construction Construction Contracts Construction Contracts 454.4 (%) 97.1 360.0 401.2 383.5 7.7 80.0 Civil 86.4 Civil 7.0 Engineering 85.5 Engineer
Slide 25: Non-consolidated Forecasts for FY2014
Non-consolidated Forecasts for FY2014 Amount Profitability (billions of yen) （％） Net sales 390.0 Gross profit 22.5 5.8 Profits in the construction 20.5 5.3 business [Architectural construction] [14.5] [4.9] [Civil engineering] [6.0] [7.0] Profits in the real estate business 2.0 30.8 Selling, general
Slide 26: 2. Management Initiatives
2. Management Initiatives President Masanori Imai 26
Slide 27: Positioning of Each Term
Positioning of Each Term FY2012 FY2013 FY2014 FY2015 Implementation of A resilient Implementation of improvement measures Recovery reforms Toda Corp. Ensure stringent selection of orders Sales strategy Reinforce order management system Business process reform Closely manage construction profitabilit
Slide 28: 2-1. Results and Recognition of Current Situation
2-1. Results and Recognition of Current Situation 28
Slide 29: Improve Performance and Financial Condition
Improve Performance and Financial Condition Secure business profitability by ensuring implementation of improvement measures Operating income (loss) Equity ratio [ ] denotes Became operating income ratio profitable 4.7 [1.1％] 34.4 (billions of yen) （％） 29.1 24.7 Operating loss for two consecutive ye
Slide 30: Order Composition Ratio (Non-consolidated)
Order Composition Ratio (Non-consolidated) Received stable orders from Medical welfare, Office buildings and Road categories Architectural Construction Civil Engineering (by construction category) (by construction category) Other Other Housing Soil and river conservation Land reclamation (%) 21.3 (%
Slide 31: Completed Construction Composition Ratio
Completed Construction Composition Ratio (Non-consolidated, Architectural Construction) Construction completed (by year) (billions of yen) Construction work orders [ ] denotes net sales of completed construction contracts received in FY2013 [314.8] [298.0] contributed main part of 100% earnings FY20
Slide 32: Reform of Head Office Structure
Reform of Head Office Structure (as of Jan 1, Apr 1) Four new organizational entities set up for realizing the policy *All equivalent to supervisory or business divisions [Structure for realizing the policy] [Policy] Value Creation Promotion Office Toda Corporation as a valuable company Overseas Bus
Slide 33: Strengthen initiatives over construction life cycle
Restructuring Aftercare Business Strengthen initiatives over construction life cycle New construction, extension and Building management, RN renovation, RN Toda Corporation Toda Bldg. Partners Creation of Establishment of Customer new value Merger of Chiyoda- Center and Stock tochitatemono Co., Ltd.
Slide 34: Summary of FY2013
Summary of FY2013 Shifted focus to concrete activities aimed at reviving earning power Issues and successes of FY2013 1. Take all possible Ensure profits, improve measures to ensure financial standing profitability Rebuild internal 2. Revive earning power infrastructure (Structural reform, restructu
Slide 35: 2-2. Initiatives for FY2014
2-2. Initiatives for FY2014 35
Slide 36: Future Direction: Value Creation
Future Direction: Value Creation Improve corporate value (social responsibility, performance improvement) Value for customers Productivity （Select orders, solutions) (Process, support tools) Human resources value (Cultivate human resources, right person in right position) 36
Slide 37: Positioning of New Organization
Positioning of New Organization Ensure responsibilities and promotion structure that would realize value creation Established Value for customers Productivity Human resources value Sep 2013 Customer center Jan 2014 Investment & Development Project Office Value Creation Promotion Office Group Control
Slide 38: Productivity Improvement
Productivity Improvement Benchmarks per employee (Non-consolidated; FY1991=100) Added value per employee=labor productivity Net sales per employee Even as the work remained busy on site, the current situation came about without effective productivity improvement measures 78.4 Necessity of 57.6 refor
Slide 39: Implementation of BPR and Rebuild ICT
Implementation of BPR (Business Process Re-engineering) Review the business process and further streamline it using ICT (information and communication technology) Complete BPR in 3 years Rebuild ICT Draft and implement Rebuild from zero medium-term plan Project implementation being led by Value Crea
Slide 40: Strategic Area: Overseas and Real Estate Businesses
Strategic area Overseas and Real Estate Businesses Performance Forecast Target for FY2015: Net sales of ¥30.0 billion Target for FY2015: Gross profit of ¥4.0 billion Net sales of overseas construction Income from real estate, etc. (consolidated) (consolidated) Line graph signifies net orders receive
Slide 41: Overseas Business: Regional Strategy
Strategic area Overseas Business: Regional Strategy Overseas construction orders received (by region) [Brazil] Focus on local hospitals and [15.3 billion yen] [25.0 billion yen] schools in addition to production facilities of Japanese and non- 1.5 Japanese businesses. ODA, etc. Sluggish growth, poli
Slide 42: Environmental Initiatives
Strategic area Environmental Initiatives Power generation from floating offshore wind turbines Marine inverse dam 2MW Demonstration unit (Goto, Nagasaki) Conceptual rendering Demonstration project aimed at Established a consortium to realize commercialization in progress the project 42
Slide 43: Performance Targets
Performance Targets Operating income ratio Implement reforms with the aim of Implementation of 2.0 achieving goals reforms （％） 1.1 Implement structural and 0.9 operational reform and build a structure that would Extension of increase profits steadily. status quo FY2013 FY2014 FY2015 (forecast) (targ
Slide 44: Strengthening the Functions of the Board of Directors
Strengthening the Functions of the Board of Directors Ensure Firm Governance for Sustainable Growth Appointment of two external directors Establish Human Resources Committee Note: Director appointment plan to be discussed at the 91st ordinary general meeting of shareholders. Members of the Human Res
Slide 45: Toda Corporation
OSTODA TODA CORPORATION (SINCE 1881) 45